Laserfiche WebLink
I. POLICY PURPOSE <br /> For the purposes of this document, the term"City"shall include the Elk River City <br /> • Council, Economic Development Authority, and Housing and Redevelopment Authority. <br /> The purpose of this policy is to establish the City of Elk River's position <br /> relating to the use of Tax Rebate Financing (TRF), otherwise referred to <br /> as Tax Abatement, for private development above and beyond the <br /> requirements and limitations set forth by State Law. This policy shall be <br /> used as a guide in the processing and review of applications requesting <br /> tax rebate assistance. The fundamental purpose of tax rebate financing in <br /> Elk River is to encourage desirable development or redevelopment that <br /> would not otherwise occur but for the assistance provided through TRF. <br /> The City of Elk River is granted the power to utilize TRF by the <br /> Minnesota Tax Abatement Act, as amended. It is the intent of the City to <br /> provide the minimum amount of TRF, as well as other incentives, at the <br /> shortest term required for the project to proceed. The City reserves the <br /> right to approve or reject projects on a case by case basis, taking into <br /> consideration established policies, project criteria, and demand on city <br /> services in relation to the potential benefits from the project. Meeting <br /> policy criteria does not guarantee the award of TRF to the project. <br /> Approval or denial of one project is not intended to set precedent for <br /> approval or denial of another project. <br /> • II. DIFFERENCE BETWEEN TRF & TIF <br /> The primary difference between Tax Rebate Financing (TRF) and Tax <br /> Increment Financing (TIF) is the way in which the dollars are awarded to <br /> the project. When TIF is awarded to a project by the city, the other <br /> political subdivisions (the school district and the county) are required to <br /> contribute their portion of the increased taxes to the project. Conversely, <br /> when TRF is requested, each political subdivision has the option of <br /> granting its portion of the increased taxes to the project. Subsequently, <br /> the dollars generated for the project with TRF are generally less than the <br /> dollars generated with TIF. <br /> III. OBJECTIVES OF TAX REBATE FINANCING <br /> As a matter of adopted policy, the City will consider using TRF to assist <br /> private development projects to achieve one or more of the following <br /> objectives: <br /> • To retain local jobs and/or increase the number and diversity of <br /> jobs that offer stable employment and/or attractive wages and <br /> benefits. <br /> • To enhance and diversify the city of Elk River's economic base. <br /> • To encourage additional unsubsidized private development in the <br /> area, either directly or indirectly through "spin off' development. <br /> 3 <br />